2. Environment
Environment means the surroundings,
external objects, influences or
circumstances under which someone
or something exists.
3. THE MARKETING
ENVIRONMENT
The forces that directly and indirectly influence
an organization’s capability to undertake its
business.
The trading forces operating in a market place
over which a business has no direct control
,but which shape the manner in which the
business function and is able to satisfy its
customers.
4. Contd..
The marketing environment surrounds and
impacts upon the organization.
There are three key elements to the
marketing environment which are
1. Internal environment
2. Micro environment
3. Macro environment.
5. Why are they important?
Well marketers build both internal and
external relationships. Marketers aim to
deliver value to satisfied customers, so we
need to assess and evaluate our internal
business/corporate environment and our
external environment which is subdivided
into micro and macro
6. Objective of analyzing marketing
environment
Knowledge of marketing environment
is central to marketing management.
Spotting the opportunities and threats.
Task involved in marketing
environment analysis.
7. COMPONENTS OF MARKETING
ENVIRONMENT
Internal environment : Forces and actions inside
the firm that affect the marketing operation
composed of internal stake holders and the other
functional areas within the business organization.
External environment
Macro environment
Micro environment
8. WHY IS IT IMPORTANT?
An understanding of macro and micro marketing
environment forces is essential for planning.
Helps a business to compete more effectively against
its rivals.
Assists in the identification of opportunities and
threats.
Enables an organization to take advantage of
emerging strategic opportunities.
9. THE INTERNAL ENVIRONMENT
All factors that are internal to the organization are known
as the 'internal environment'. They are generally audited
by applying the 'Five Ms' which are Men, Money,
Machinery, Materials and Markets. The internal
environment is as important for managing change as the
external. As marketers we call the process of managing
internal change 'internal marketing.‘
10. THE INTERNAL ENVIRONMENT
It includes the following:
The human resource department.
The operations department.
The accounting and finance department.
The research and development department.
11. Example of TCS
What does environment mean for you
personally and as a CEO,
In my opinion Internal Environment , is a
way of life. One needs to be proactive and
prepared for the emerging trends of the
future. Transformation is multi-faceted. It
goes beyond organizational transformation.
It involves transformation of the individual at
one end and society at the other. As a CEO,
the responsibilities must be understood
within and in all the above context
12. Contd…..
At the level of the organization several changes
have been initiated. These include:
Empowerment of people
Building excellence throughout the organization
Open and transparent communication
Digitalization of TCS
Setting up a performance management system
14. What is environmental
scanning
Careful monitoring of an organization’s
internal an d external environments for
detecting early signs of opportunities
and threats that may influence its
current and future plans.
The process of collecting, analyzing,
and distributing information for tactical
and strategic purposes.
15. Why do we need to scan
To know what is the appropriate
business to start in the place.
To develop strategies that you will do
to get ahead of competitors.
16. Micro environment
The micro environment affects the
organization directly. It refers to the
environment that most closely linked
to the firm.
The micro environment of the
organization consists of those
elements which are controllable by the
managemnet.
18. Customer
Customer are the actual buyer of our
goods and services.
The company must study its customer
markets closely since each market
has its own special characteristics.
19. suppliers
Suppliers are firms and individuals
that provide the resources needed by
the company.
They are an important link in the
company’s overall customer “ value
delivery system”.
20. competitors
Conducting competitor analysis is
critical for success of the firm.
A marketer must monitor its
competitor’s offerings to create
strategic advantage.
21. Market intermediaries
Marketing intermediaries are firms that
help the company to promote, sell and
distribute its goods to final buyer.
22. Public
A public is any group that has an
actual or potential interest in or impact
on an organization’s ability to achieve
its objectives.
A company should prepare a
marketing plan for all their major
publics.
23. Macro environment
Macro environment refers to those
factors, which are not concerned to
the immediate environment.
These factors are external to the
company and are quite uncontrollable.
25. Demographic factors
Demography is the study of human
population in terms of sizes, density,
location, age, gender, occupation.
The demographic environment is a
major interest to marketers because it
involves people, and people make up
markets.
26. Economic factors
Economic factors affect the spending
power of people.
It is necessary that a marketer
examine the following factors-
Gross national product
Per capita income
Balance of payment position
28. Technological factors
The technological environment
consists of those factors related to
knowledge applied, and the materials
and machines used in the production
of goods and services that have an
impact on the business of an
organization.
29. Political and legal factors
The political factors consist of laws,
government agencies that influence
and limit various organizations and
individuals in the given society.